Fitch: Chesapeake notes at BB

Fitch Ratings said it assigned a BB rating to Chesapeake Energy Corp.'s proposed $1 billion of senior notes due 2021.

The outlook is stable.

Proceeds from the note offering will be used to repay debt outstanding under the company's revolving bank credit facility.

Fitch maintains Chesapeake's BB issuer default rating, BB senior unsecured debt, BBB- senior secured revolving credit facility and B+ convertible preferred stock.

Chesapeake's ratings are supported by the size and low risk profile of its oil and gas reserves, its very robust reserve replacement results and strong organic reserve replacement and production growth, Fitch said.

As of Sept. 30, Chesapeake had a 12 months debt-to-EBITDAX ratio of 2.6 times.

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